KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED) Registered Office: 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai

MEDIA RELEASE

KOTAK MAHINDRA BANK ANNOUNCES RESULTS

Kotak Mahindra Bank Standalone PAT for Q4FY21 ` 1,682 crore, up 33% yoy; Consolidated PAT for Q4FY21 ` 2,589 crore, up 36% yoy

Mumbai, 3rd May, 2021: The Board of Directors of Kotak Mahindra Bank (“the Bank”) approved the audited standalone and consolidated results for Q4FY21 and FY21, at the Board meeting held in Mumbai, today.

Kotak Mahindra Bank standalone results

The Bank’s PAT for Q4FY21 increased to ` 1,682 crore from ` 1,267 crore in Q4FY20, up 33% and for FY21 increased to ` 6,965 crore from ` 5,947 crore in FY20 up 17%.

Net Interest Income (NII) for Q4FY21 increased to ` 3,843 crore, from ` 3,560 crore in Q4FY20, up 8% and for FY21 increased to ` 15,340 crore, from ` 13,500 crore in FY20, up 14%. Net Interest Margin (NIM) for Q4FY21 was at 4.39%.

Operating profit for Q4FY21 was ` 3,407 crore, up 25% from ` 2,725 crore in Q4FY20 and for FY21 was ` 12,215 crore, up 22% from ` 10,021 crore in FY20.

CASA ratio as at March 31, 2021 stood at 60.4% compared to 56.2% as at March 31, 2020.

Average Savings deposits grew by 27% to ` 108,812 crore for FY21 compared to ` 85,656 crore for FY20. Average Current Account deposits grew by 17% to ` 39,481 crore for FY21 compared to ` 33,699 crore for FY20.

CASA and TDs below ` 5 crore as at March 31, 2021, constituted 91% of total deposits (86% as at March 31, 2020). TD Sweep deposits as at March 31, 2021 were 7.5% of total deposits (6.6% as at March 31, 2020).

Advances as at March 31, 2021 were ` 223,689 crore up 4.5% from ` 214,103 crore as at December 31, 2020 (` 219,748 crore as at March 31, 2020). Customer Assets, which includes Advances and Credit substitutes, were ` 238,857 crore as at March 31, 2021 up 4.4% from ` 228,809 crore as at December 31, 2020 (` 228,970 crore as at March 31, 2020).

COVID related provisions as at March 31, 2021 stood at ` 1,279 crore. In accordance with the Resolution Framework for COVID-19 and MSME announced by RBI, as at March 31, 2021, the Bank has implemented, for certain eligible borrowers, restructuring of ` 435 crore (0.19% of net advances).

As at March 31, 2021, GNPA was 3.25% & NNPA was 1.21%. As on March 31, 2021, SMA2 outstanding was ` 110 cr (0.05% of net advances). Credit cost, excluding COVID-19 contingency provisioning, for FY21 was 84 bps of net advances (67 bps for FY20).

Capital adequacy ratio of the Bank as per Basel III, as at March 31, 2021 was 22.3% and Tier I ratio was 21.4%. The Board of Directors of the Bank has recommended dividend of ` 0.90 per equity share having face value of ` 5, for the year ended March 31, 2021, subject to approval of shareholders.

Consolidated results at a glance

Consolidated PAT for FY21 increased to ` 9,990 crore from ` 8,593 crore in FY20 up 16% and for Q4FY21 increased to ` 2,589 crore from ` 1,905 crore in Q4FY20 up 36%.

For FY21, the Bank’s contribution to the consolidated PAT was ` 6,965 crore. Net contribution of the subsidiaries & associates was 30% of the consolidated PAT.

The contribution of key subsidiaries is given below:

Subsidiaries PAT (` crore) FY21 FY20 Kotak Securities 793 550 Kotak Mahindra Life Insurance 692 608 Kotak Mahindra Prime 535 673 Kotak Asset Management & Trustee Company 346 337 Kotak Mahindra Investments 258 270

The Embedded Value (IEV methodology) of Kotak Mahindra Life Insurance as on March 31, 2021 was ` 9,869 crore. The Value of New Business (VNB) for FY21 was ` 691 crore and the New Business (VNB) Margin for FY21 was 28.6%. The 13th month persistency as on February 2021 (on 12 month rolling premium basis) was 88.8%.

AUM (Policyholders’) of Kotak Mahindra Life Insurance as at March 31, 2021 grew 34% YoY to ` 43,042 crore.

The Relationship Value of the customers of Wealth, Priority Banking and Investment Advisory was ~ ` 382,000 crore as at March 31, 2021 up 41% from ~ ` 270,000 crore as at March 31, 2020.

Consolidated Capital and Reserves & Surplus as at March 31, 2021 was ` 84,836 crore (` 67,134 crore as at March 31, 2020). The Book Value per Share was ` 426.

Consolidated Customer Assets, including Advances and Credit Substitutes, were ` 268,149 crore as at March 31, 2021 up 4.8% from ` 255,786 crore as at December 31, 2020 (` 260,583 crore as at March 31, 2020).

Total assets managed / advised by the Group as at March 31, 2021 were ` 323,762 crore up 43% over ` 225,878 crore as at March 31, 2020.

The financial results of the subsidiaries and associates used for preparation of the consolidated financial results are in accordance with Generally Accepted Accounting Principles in India (‘GAAP’) specified under Section 133 and relevant provision of Companies Act, 2013. The financial statements of Indian subsidiaries (excluding insurance companies) and associates are prepared as per Indian Accounting Standards in accordance with the Companies (Indian Accounting Standards) Rules, 2015.

About Kotak Mahindra Group

Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first non-banking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd (KMBL).

Kotak Mahindra Group (Group) offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life and general insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The premise of Kotak Mahindra Group’s business model is concentrated India, diversified financial services. The bold vision that underscores the Group’s growth is an inclusive one, with a host of products and services designed to address the needs of the unbanked and insufficiently banked.

As at March 31, 2021, the Group’s consolidated Capital and Reserves & Surplus stands at ` 84,836 crore.

Kotak Mahindra Group has a global presence through its subsidiaries in UK, USA, Gulf Region, Singapore and Mauritius with offices in London, New York, Abu Dhabi, Singapure and Mauritius respectively. As on 31st March, 2021, Kotak Mahindra Bank Ltd has a national footprint of 1,604 branches and 2,598 ATMs, and branches in GIFT City and DIFC (Dubai).

For more information, please visit the Company’s website at https://www.kotak.com

For further information, please contact

Phiroza Choksi Sakshi Denis Rakesh Sharma Lalita Tiwari Kotak Mahindra Bank Kotak Mahindra Bank Fortuna PR Fortuna PR Phone: +91-98203 63681 Phone: +91 70454 74287 Mobile: +91 98335 37679 Mobile: +91 99302 52484 [email protected] [email protected] [email protected] [email protected]

KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED) Registered Office: 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051

CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH, 2021 ₹ crore Quarter ended Year ended Sr 31-Mar-21 31-Mar-20 Particulars 31-Dec-20 31-Mar-21 31-Mar-20 No (Audited) (Audited) (Unaudited) (Audited) (Audited) Refer Note 4 Refer Note 4 1 Interest earned (a+b+c+d) 7,951.77 8,133.58 8,434.13 32,819.83 33,474.16 (a) Interest/discount on advances/bills 5,147.70 5,251.05 6,198.95 21,620.53 24,877.11 (b) Income on investments 2,380.50 2,410.96 1,868.33 9,274.97 7,327.31 (c) Interest on balances with RBI & other 302.38 365.60 261.23 1,480.91 827.64 interbank funds (d) Others 121.19 105.97 105.62 443.42 442.10 2 Other income (a+b+c) 8,224.10 6,505.40 3,650.58 23,883.90 16,825.53 (a) Profit/(Loss) on sale of investments 630.13 1,819.33 (2,356.52) 4,525.91 (1,494.83) including revaluation (insurance business) (b) Premium on Insurance Business 4,939.82 2,712.95 3,924.75 11,367.40 10,566.03 (c) Other income (Refer Notes 5, 6 & 7) 2,654.15 1,973.12 2,082.35 7,990.59 7,754.33 3 Total income (1+2) 16,175.87 14,638.98 12,084.71 56,703.73 50,299.69 4 Interest expended 2,932.54 3,120.26 3,800.94 12,966.55 15,900.68 5 Operating expenses (a+b+c) 8,664.99 7,585.70 4,347.12 27,309.15 20,419.11 (a) Employees Cost 1,438.18 1,536.64 1,422.98 5,855.70 5,755.97 (b) Policy holders’ reserves, surrender 5,160.14 4,345.03 1,089.76 15,037.37 7,958.18 expense and claims (Refer Note 15) (c) Other operating expenses (Refer Note 6 2,066.67 1,704.03 1,834.38 6,416.08 6,704.96 and 8) Total expenditure (4+5) 6 11,597.53 10,705.96 8,148.06 40,275.70 36,319.79 (excluding provisions and contingencies) Operating Profit (3-6) 7 4,578.34 3,933.02 3,936.65 16,428.03 13,979.90 (Profit before provisions and contingencies) Provisions (other than tax) and contingencies 8 1,214.80 478.02 1,262.19 3,259.69 2,558.10 (Refer Note 9) 9 Exceptional items - - - - - Profit from ordinary activities before tax 10 3,363.54 3,455.00 2,674.46 13,168.34 11,421.80 (7-8-9) 11 Tax expense 810.28 879.26 722.64 3,265.44 2,814.72 Net Profit from ordinary activities after 12 2,553.26 2,575.74 1,951.82 9,902.90 8,607.08 tax before Minority Interest (10–11) 13 Extraordinary items (net of tax expense) - - - - - Net Profit after tax before Minority 14 2,553.26 2,575.74 1,951.82 9,902.90 8,607.08 Interest (12 -13) 15 Less: Share of Minority Interest - - - - - 16 Add: Share in Profit/(Loss) of associates 36.06 25.93 (46.64) 87.30 (13.72) 17 Profit after tax (14-15+16) 2,589.32 2,601.67 1,905.18 9,990.20 8,593.36 Paid Up Equity Capital - (Face value of ₹ 18 990.92 990.24 956.52 990.92 956.52 5 per share) Group Reserves (excluding Minority Interest 19 83,345.53 65,677.60 and Revaluation reserves) 20 Minority Interest - - 21 Analytical Ratios (i) (i) Capital Adequacy ratio – Basel III 22.26 21.54 17.89 22.26 17.89 (standalone) (ii) Earnings per equity share - Basic (not annualised) ₹ 12.87 13.14 9.71 50.53 44.73 - Diluted (not annualised) ₹ 12.86 13.14 9.70 50.49 44.68 (iii) NPA Ratios (unaudited) (a) Gross NPA 8,276.29 5,510.55 5,487.66 8,276.29 5,487.66 (b) Net NPA 3,105.50 1,284.58 1,744.81 3,105.50 1,744.81 (c) % of Gross NPA to Gross Advances 3.22 2.25 2.16 3.22 2.16 (d) % of Net NPA to Net Advances 1.23 0.53 0.70 1.23 0.70 (e) % of Gross NPA to Gross Advances 3.31 – Proforma (Refer Note 13)

NOTES:

1. The consolidated financial results are prepared in accordance with Accounting Standard – 21 (AS-21) “Consolidated Financial Statements” and Accounting Standard – 23 (AS–23) “Accounting for investment in associates in Consolidated Financial Statements” specified under section 133 and relevant provisions of Companies Act, 2013.

2. The financial results of the subsidiaries and associates used for preparation of the consolidated financial results are in accordance with Generally Accepted Accounting Principles in India (‘GAAP’) specified under Section 133 and relevant provision of Companies Act, 2013. The financial statements of Indian subsidiaries (excluding insurance companies) and associates are prepared as per Indian Accounting Standards in accordance with the Companies (Indian Accounting Standards) Rules, 2015.

3. The above consolidated financial results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors held on 3rd May, 2021. The consolidated financial results for the quarter and year ended 31st March, 2021 were subjected to audit by the statutory auditors of the Bank and there are no modifications in the Auditor's Report. The results for quarter ended 31st December, 2020 were subjected to limited review by the statutory auditors of the Bank.

4. The figures of the last quarter in each of the year are balancing figures between audited figures in respect of full financial year and the unaudited published year to date figures up to the third quarter of the respective financial year.

5. Details of other income forming part of the consolidated results are as follows:

₹ crore

Quarter ended Year ended 31-Mar-21 31-Mar-20 Particulars 31-Dec-20 31-Mar-21 31-Mar-20 (Audited) (Audited) (Unaudited) (Audited) (Audited) Refer Note 4 Refer Note 4 Commission, fees, exchange, 2,472.85 1,843.93 1,640.50 7,341.78 6,876.96 brokerage and others Profit on sale of investments 181.30 129.19 441.85 648.81 877.37 (other than insurance business) Total – Other income 2,654.15 1,973.12 2,082.35 7,990.59 7,754.33

6. Other income in the consolidated results for the reporting periods is net of sub-brokerage paid in the broking subsidiary amounting to ₹ 35.87 crore for the quarter and ₹ 111.04 crore for the year ended 31st March, 2021 (for the quarter ended 31st December 2020, ₹ 26.02 crore, for the quarter ended 31st March, 2020 ₹ 17.85 crore and for the year ended 31st March, 2020 amounting to ₹ 66.04 crore).

7. Other income includes non-fund based income such as commission earned from guarantees / letters of credit, financial advisory fees, selling of third party products, earnings from foreign exchange transactions and profit / loss from the sale of securities.

8. Details of other operating expenditure forming part of consolidated results are as follows:

₹ crore

Quarter ended Year ended

31-Mar-21 31-Mar-20 Particulars 31-Dec-20 31-Mar-21 31-Mar-20 (Audited) (Audited) (Unaudited) (Audited) (Audited) Refer Note 4 Refer Note 4 Brokerage 222.02 156.01 188.93 532.91 704.19 Depreciation 115.66 115.35 116.93 461.05 464.89 Rent, taxes and lighting 192.65 195.79 199.11 770.12 768.58 Others 1,536.34 1,236.88 1,329.41 4,652.00 4,767.30 Total – Other operating expenses 2,066.67 1,704.03 1,834.38 6,416.08 6,704.96

9. Provisions and contingencies are net of recoveries made against accounts, which have been written off as bad in the previous period / year. Details of Provisions (other than tax) and contingencies forming part of consolidated results are as follows: ₹ crore Quarter ended Year ended 31-Mar-21 31-Mar-20 Particulars 31-Dec-20 31-Mar-21 31-Mar-20 (Audited) (Audited) (Unaudited) (Audited) (Audited) Refer Note 4 Refer Note 4 Provision towards advances / others (including provisions for exposures to 759.85 543.42 439.00 2,198.02 1,663.49 entities with Unhedged Foreign Currency Exposures) (Refer Note 13) (net) General provision for COVID-19 - - 713.68 682.40 713.68 Deferment cases (net) Provision / (Write back of provisions) 454.95 (65.40) 109.51 379.27 180.93 towards investments (net) Total – Provisions (other than tax) 1,214.80 478.02 1,262.19 3,259.69 2,558.10 and contingencies

10. In addition to the widespread public health implications, the COVID-19 pandemic has had an extraordinary impact on macroeconomic conditions in India and around the world. During the previous year, people and economies around the world, witnessed serious turbulence caused by the first wave of the pandemic, the consequent lockdowns, the gradual easing of restrictions and the emergence of new variants of the virus. Although government has started vaccination drive, COVID-19 cases have significantly increased in recent months due to second wave as compared to earlier levels in India. Various state governments have again announced strict measures including lockdowns to contain this spread. As COVID vaccines get administered to more and more people, businesses in sectors impacted by pandemic may pick up. However, the continuing and evolving nature of the virus has created uncertainty regarding estimated time required for businesses and lives to get back to normal.

The Bank and its subsidiaries continue to closely monitor the situation and in response to this health crisis and has implemented protocols and processes to execute its business continuity plans and help protect its employees and support its clients. The pandemic has impacted lending business, distribution of third party products, fee income from services or usage of debit/ credit cards, collection efficiency etc. and has resulted in increase in customer defaults and consequently increase in provisions. The Bank and its subsidiaries, however, have not experienced any significant disruptions in the past one year and has considered the impact on carrying value of assets based on the external or internal information available up to the date of approval of consolidated financial results. The future direct and indirect impact of COVID-19 on Bank and its subsidiary business, results of operations, financial position and cash flows remains uncertain. The consolidated financial results do not include any adjustments that might result from the outcome of this uncertainty.

11. In accordance with the RBI guidelines relating to COVID-19 Regulatory Package dated 27th March, 2020, 17th April, 2020 and 23rd May 2020 and clarification issued by RBI through Indian Bankers Association dated 6th May, 2020, the Bank and its NBFC subsidiaries granted moratorium on the payment of installments and/or interest, as applicable, falling due between 1st March, 2020 and 31st August, 2020 to eligible borrowers classified as Standard, even if overdue, as on 29th February, 2020. The moratorium period, wherever granted, is excluded from the number of days past-due for the purpose of asset classification under RBI's Income Recognition and Asset Classification norms.

The Bank and its NBFC subsidiaries hold provisions as at 31st March, 2021 against the potential impact of customers impacted by COVID-19 pandemic, which is higher than the regulatory requirements.

12. In accordance with Resolution Framework for COVID-19 announced by RBI on 6th August, 2020, the Bank and its NBFC subsidiaries have implemented one-time restructuring for certain eligible borrowers and such borrowers are classified as Standard in accordance with the above framework.

13. The Honourable Supreme Court of India, in multiple writ petitions, vide an interim order dated 3rd September, 2020 had directed that accounts which were not declared as NPA till 31st August, 2020 shall not be declared as NPA till further orders. Basis the said interim order, the Bank and its NBFC subsidiaries had not classified any borrower account (whether granted moratorium or not) as NPA after 31st August, 2020. Had the Bank and its NBFC subsidiaries classified borrower accounts, which were more than 90 days overdue as at 31st December, 2020 as NPA, the gross NPA ratio and net NPA ratio as at 31st December, 2020 would have been 3.31% and 1.32% respectively. As a matter of prudence, the Bank and its NBFC subsidiaries had made additional standard provisions of ₹ 958.43 crore on such advances as of 31st December, 2020, including income accrued and not collected.

The Honourable Supreme Court of India vacated interim relief granted not to declare accounts of borrower as NPA vide its judgement on 23rd March, 2021. Accordingly, the Bank and its NBFC subsidiaries have classified borrowers as NPA with effect from 1st September, 2020 in accordance with instructions contained in paragraph 5 of the RBI circular dated 7th April, 2021. The additional standard provision held on 31st December, 2020 were utilised for making provisions on these accounts and reversing income not collected in respective quarters.

Further, RBI circular dated 7th April, 2021 required banks to refund/adjust the ‘interest on interest’ charged to the borrowers during the moratorium period, i.e. March 1, 2020 to August 31, 2020 in conformity to the Honourable Supreme Court of India judgement on 23rd March 2021. Pursuant to the said order and as per the RBI circular, the methodology for calculation of the

amount of such 'interest on interest' was finalised by the Indian Banks Association (IBA). The Bank and its subsidiaries are in the process of implementing this methodology and pending finalization has created a liability towards estimated interest relief of ₹ 128.63 crore and has reduced the same from interest earned for the quarter and year ended 31st March 2021.

14. RBI circular DBOD.No.BP.BC.1/21.06.201/2015-16 dated 1st July, 2015 on 'Basel III Capital Regulations' read together with the RBI circular DBR.No.BP.BC.80/21.06.201/2014-15 dated 31st March, 2015 on 'Prudential Guidelines on Capital Adequacy and Liquidity Standards-Amendments' requires banks to make applicable Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel III Framework. These disclosures are available on the Bank's website at the following link: https://www.kotak.com/en/investor-relations/financial-results/regulatory-disclosure.html. These disclosures have not been subjected to audit or limited review.

15. The change in the valuation of liabilities for life policies in force, lapsed policies that are likely to be revived in future and for policies in respect of which premium has been discontinued but liability exists, for the quarter and year ended 31st March, 2021 amounting to ₹ 3,582.15 crore and ₹ 10,498.48 crore respectively (for the quarter ended 31st December, 2020, ₹ 3,155.03 crore, for the quarter and year ended 31st March, 2020, ₹ 5.94 crore and ₹ 4,100.96 crore respectively), has been included in “Policy holders’ reserves, surrender expense and claims” under “Operating Expenses”.

16. The Board of Directors of the Bank have proposed a dividend of ₹ 0.90 per share having face value ₹ 5 for the year ended 31st March, 2021 (Previous Year NIL). The Bank is obliged to pay dividend to those shareholders whose names are appearing in the register of members as on the book closure date. The dividend will be paid after the approval of shareholders at the Annual General Meeting.

17. During the first quarter of the current financial year, the Bank had issued 65,000,000 equity shares of a face value ₹ 5 each at a price of ₹ 1,145 per equity share including a premium of ₹ 1,140 per equity share aggregating to ₹ 7,442.50 crore pursuant to a Qualified Institutional Placement (QIP).

18. The summarized consolidated balance sheet of the Bank is given below:

₹ crore As at As at Summarised Balance Sheet 31st March 2021 31st March 2020 (Audited) (Audited) CAPITAL AND LIABILITIES Capital 1,490.92 1,456.52 Employees’ Stock Options (Grants) Outstanding 2.16 2.87 Reserves and Surplus 83,345.53 65,677.60 Deposits 278,871.41 260,400.21 Borrowings 47,738.90 65,576.72 Policyholder’s Funds 42,071.52 31,508.82 Other Liabilities and Provisions 25,352.25 18,549.97 TOTAL 478,872.69 443,172.71 ASSETS Cash and balances with Reserve Bank of India 12,528.00 9,513.24 Balances with Banks and Money at Call and Short Notice 35,188.62 54,566.61 Investments 156,945.55 111,196.91 Advances 252,188.22 249,878.96 Fixed Assets 1,740.16 1,860.96 Other Assets 19,468.39 15,342.28 Goodwill on consolidation 813.75 813.75 TOTAL 478,872.69 443,172.71

19. Consolidated Segment information is as under: Segment Principal activity Corporate/ Wholesale Wholesale borrowings and lending and other related services to the corporate sector, which are Banking not included under retail banking. Retail Banking Includes lending, deposit taking and other retail services/ products including credit cards. Treasury, BMU and Money market, forex market, derivatives, investments and primary dealership of government Corporate Centre securities, Balance Sheet Management Unit (BMU) responsible for Asset Liability Management and Corporate Centre, which primarily comprises of support functions. Vehicle Financing Retail vehicle finance and wholesale trade finance to auto dealers from its Subsidiary Company Other Lending Activities Financing against securities, securitisation and other loans / services from its Subsidiary Companies Broking Brokerage income on market transactions done on behalf of clients, interest on delayed payments, distribution of financial products from its Subsidiary Company. Advisory and Providing financial advisory and transactional services such as mergers and acquisition advice and Transactional Services equity/ debt issue management services from its Subsidiary Companies Asset Management Management of funds and investments on behalf of clients and funds from its Subsidiary Companies Insurance Life insurance and General Insurance from its Subsidiary Companies

₹ crore Quarter ended Year ended Sr 31-Mar-21 31-Mar-20 Particulars 31-Dec-20 31-Mar-21 31-Mar-20 No (Audited) (Audited) (Unaudited) (Audited) (Audited) Refer Note 4 Refer Note 4 1 Segment Revenues: Treasury, BMU and Corporate Centre 2,815.08 2,454.85 1,935.98 9,993.60 7,184.98 Retail Banking 3,442.03 3,404.98 3,757.21 13,815.72 15,057.84 Corporate / Wholesale Banking 3,254.55 3,222.96 3,707.88 13,016.78 13,918.46 Vehicle Financing 479.94 485.40 560.28 1,921.37 2,334.43 Other Lending Activities 343.05 346.74 464.35 1,438.39 1,974.16 Broking (Refer Note 6) 527.68 431.71 378.78 1,790.32 1,393.27 Advisory and Transactional Services 104.25 123.24 73.18 386.25 417.78 Asset Management 323.00 297.03 314.07 1,122.05 1,121.48 Insurance 6,178.82 5,129.60 2,083.58 18,231.45 11,063.09 Sub-total 17,468.40 15,896.51 13,275.31 61,715.93 54,465.49 Less: inter-segment revenues (1,292.53) (1,257.53) (1,190.60) (5,012.20) (4,165.80) Total Income 16,175.87 14,638.98 12,084.71 56,703.73 50,299.69 2 Segment Results: Treasury, BMU and Corporate Centre 1,031.18 1,222.01 177.96 3,609.56 2,283.73 Retail Banking (77.06) (151.21) 349.56 577.41 1,553.19 Corporate / Wholesale Banking 1,406.50 1,562.22 1,280.46 5,698.86 4,384.22 Vehicle Financing 134.17 68.73 63.70 239.30 444.01 Other Lending Activities 142.58 145.54 171.30 534.33 651.93 Broking 244.45 186.41 169.68 787.75 509.32 Advisory and Transactional Services 43.20 55.31 (6.60) 123.74 168.69 Asset Management 219.59 143.29 159.72 698.44 615.37 Insurance 218.93 222.70 308.68 898.95 811.34 Total Profit before tax, minority

interest and associates 3,363.54 3,455.00 2,674.46 13,168.34 11,421.80 Provision for tax 810.28 879.26 722.64 3,265.44 2,814.72 Net Profit before share of 2,553.26 2,575.74 1,951.82 9,902.90 8,607.08 Associates and Minority 3 Segment Assets: Treasury, BMU and Corporate Centre 150,098.25 167,490.04 137,136.12 150,098.25 137,136.12 Retail Banking 240,506.83 235,768.44 216,234.38 240,506.83 216,234.38 Corporate / Wholesale Banking 162,450.23 156,010.68 153,443.88 162,450.23 153,443.88 Vehicle Financing 16,459.07 16,452.84 19,505.92 16,459.07 19,505.92 Other Lending Activities 14,399.41 12,950.92 15,340.95 14,399.41 15,340.95 Broking 8,679.90 6,679.51 5,753.97 8,679.90 5,753.97 Advisory and Transactional Services 297.20 263.86 319.06 297.20 319.06 Asset Management 3,753.21 3,224.68 2,975.43 3,753.21 2,975.43 Insurance 48,785.22 44,984.34 37,133.30 48,785.22 37,133.30 Sub-total 645,429.32 643,825.31 587,843.01 645,429.32 587,843.01 Less: inter-segment assets (168,138.28) (168,236.36) (145,997.82) (168,138.28) (145,997.82) Total 477,291.04 475,588.95 441,845.19 477,291.04 441,845.19 Add: Unallocated Assets 1,581.65 1,703.93 1,327.52 1,581.65 1,327.52 Total Assets as per Balance Sheet 478,872.69 477,292.88 443,172.71 478,872.69 443,172.71 4 Segment Liabilities: Treasury, BMU and Corporate Centre 121,065.38 137,905.07 122,215.01 121,065.38 122,215.01 Retail Banking 226,380.72 221,565.27 200,770.56 226,380.72 200,770.56 Corporate / Wholesale Banking 145,580.04 140,547.20 137,983.86 145,580.04 137,983.86 Vehicle Financing 9,400.28 9,825.69 14,185.38 9,400.28 14,185.38 Other Lending Activities 6,028.30 5,662.78 7,610.77 6,028.30 7,610.77 Broking 7,795.01 5,825.14 4,860.90 7,795.01 4,860.90 Advisory and Transactional Services 95.72 75.98 74.52 95.72 74.52 Asset Management 739.49 468.16 576.71 739.49 576.71 Insurance 44,558.81 40,724.64 33,526.74 44,558.81 33,526.74 Sub-total 561,643.75 562,599.93 521,804.45 561,643.75 521,804.45 Less: inter-segment liabilities (168,138.28) (168,236.36) (145,997.82) (168,138.28) (145,997.82) Total 393,505.47 394,363.57 375,806.63 393,505.47 375,806.63 Add: Unallocated liabilities 530.77 812.83 231.96 530.77 231.96 Add: Share Capital, Reserves & 84,836.45 82,116.48 67,134.12 84,836.45 67,134.12 Surplus & Minority Interest Total Capital and Liabilities as 478,872.69 477,292.88 443,172.71 478,872.69 443,172.71 per Balance Sheet

20. Consolidated Cash Flow Statement: ₹ crore Year ended Particulars 31-Mar-21 31-Mar-20 (Audited) (Audited) CASH FLOW FROM OPERATING ACTIVITIES Net Profit before share in profit/(loss) of Associates 9,902.90 8,607.08 Add: Provision for tax 3,265.44 2,814.72 Net Profit before taxes 13,168.34 11,421.80 Adjustments for :- Employee Stock Options Expense 1.82 2.77 Depreciation on Group's Property 461.05 464.89 Diminution in the value of Investments 379.27 180.93 (Profit) / Loss on revaluation of investments (net) (3,612.21) 2,205.03 Profit on sale of Investments (net) (1,767.77) (1,547.75) Amortization of Premium on Investments 427.51 314.18 Provision for Non-Performing Assets, Standard Assets and Other Provisions 2,880.42 2,377.17 Profit on sale of Fixed Assets (38.66) (29.42) 11,899.77 15,389.60 Adjustments for :- (Increase) / Decrease in investments - Available for Sale, Held for Trading and (30,272.12) 3,910.17 Stock-in-Trade (Increase) in Advances (4,371.57) (7,983.30) (Increase) in Other Assets (3,944.46) (982.82) Increase in Deposits 18,471.20 35,575.95 Increase in Policyholders' Funds 10,562.70 4,091.00 Increase / (Decrease) in Other Liabilities and Provisions 5,761.70 (515.49) Subtotal (3,792.55) 34,095.51 Direct Taxes Paid (net of refunds) (3,226.08) (2,866.28) NET CASH FLOW FROM/ (USED IN) OPERATING ACTIVITIES (A) 4,881.14 46,618.83

CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (368.59) (452.62) Proceeds from sale of Fixed assets 68.45 39.93 Proceeds from Sale of Shares in Associates - 14.26 (Increase) in Other Investments (including investments in HTM securities) (10,816.00) (12,800.44) NET CASH FLOW (USED IN) INVESTING ACTIVITIES (B) (11,116.14) (13,198.87)

CASH FLOW FROM FINANCING ACTIVITIES Dividend paid including corporate dividend tax (40.50) (233.02) Money received on issue of Equity Shares / exercise of stock options 7,843.75 360.61 Share issue expenses (37.48) (0.37) (Decrease) in borrowings (17,837.82) (862.22) NET CASH FLOW FROM/ (USED IN) FINANCING ACTIVITIES (C) (10,072.05) (735.00)

Increase / (Decrease) in Foreign Currency Translation Reserve (D) (56.18) 130.43

NET INCREASE/(DECREASE)IN CASH AND CASH EQUIVALENTS (A+B+C+D) (16,363.23) 32,815.39

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 64,079.85 31,264.46

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 47,716.62 64,079.85 Balance with banks in India in Other Deposit Accounts 5,027.36 6,621.14 Balance with banks in India in Current Account 296.98 468.58 Money at call and short notice in India with Banks 2,585.88 3,145.84 Money at call and short notice in India with Other Agencies 15,300.00 40,300.00 Cash in hand 1,489.56 1,729.80 Balance with RBI in Current Account 11,038.44 7,783.44 Balance with Banks Outside India: (i) In Current Account 1,590.94 757.36 (ii) In other Deposit Accounts 10,387.46 3,273.69 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 47,716.62 64,079.85

21. There has been no change in the significant accounting policies during the quarter and year ended 31st March, 2021 as compared to those followed for the year ended 31st March, 2020.

22. Figures for the previous period’s / year have been regrouped wherever necessary to conform to current periods / year’s presentation.

By order of the Board of Directors For Kotak Mahindra Bank Limited

Dipak Gupta Mumbai, 3rd May, 2021 Joint Managing Director

KOTAK MAHINDRA BANK LIMITED (STANDALONE) Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051

STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31st MARCH, 2021 ` crore Sr Particulars Quarter ended Year ended No 31-Mar-21 31-Dec-20 31-Mar-20 31-Mar-21 31-Mar-20 (Audited) (Unaudited) (Audited) (Audited) (Audited) Refer Note 2 Refer Note 2 1 Interest earned (a+b+c+d) 6,448.86 6,659.27 6,804.68 26,840.28 26,929.61 (a) Interest/discount on advances/ 4,413.02 4,505.29 5,282.82 18,589.08 20,999.24 bills (b) Income on investments 1,743.07 1,797.09 1,300.93 6,833.41 5,257.25 (c) Interest on balances with RBI & 233.04 297.59 154.45 1,174.74 381.24 other interbank funds (d) Others 59.73 59.30 66.48 243.05 291.88 2 Other income (Refer Note 3) 1,949.53 1,285.20 1,489.39 5,459.19 5,372.11 3 Total income (1+2) 8,398.39 7,944.47 8,294.07 32,299.47 32,301.72 4 Interest expended 2,606.05 2,783.72 3,245.03 11,500.62 13,429.95 5 Operating expenses (a+b) 2,384.85 2,257.86 2,323.76 8,584.14 8,850.94 (a) Employee cost 868.90 959.28 969.59 3,729.13 3,877.63 (b) Other operating expenses 1,515.95 1,298.58 1,354.17 4,855.01 4,973.31 6 Total expenditure (4+5) 4,990.90 5,041.58 5,568.79 20,084.76 22,280.89 (excluding provisions & contingencies) 7 Operating profit (3-6) (Profit before provisions and 3,407.49 2,902.89 2,725.28 12,214.71 10,020.83 contingencies) 8 Provisions (other than tax) and 1,179.41 418.58 1,047.47 2,911.72 2,216.16 contingencies (Refer Note 3 and 4) 9 Exceptional items - - - - - 10 Profit from ordinary activities 2,228.08 2,484.31 1,677.81 9,302.99 7,804.67 before tax (7-8-9) 11 Tax expense 545.71 630.77 411.21 2,338.15 1,857.49 12 Net Profit from ordinary activities 1,682.37 1,853.54 1,266.60 6,964.84 5,947.18 after tax (10-11) 13 Extraordinary items (net of tax - - - - - expense) 14 Net Profit (12-13) 1,682.37 1,853.54 1,266.60 6,964.84 5,947.18 15 Paid up equity share capital - (of 990.92 990.24 956.52 990.92 956.52 Face Value ` 5 per share) 16 Reserves (excluding revaluation 62,236.05 47,558.78 reserves) 17 Analytical Ratios (i) Percentage of shares held by - - - - - Government of India (ii) Capital adequacy ratio – Basel III 22.26 21.54 17.89 22.26 17.89 (iii) Earnings per equity share - Basic (not annualised) ` 8.29 9.36 6.37 35.17 30.88 - Diluted (not annualised) ` 8.28 9.36 6.36 35.14 30.84 (iv) NPA Ratios a) Gross NPA 7,425.51 4,928.04 5,026.89 7,425.51 5,026.89 b) Net NPA 2,705.17 1,064.02 1,557.89 2,705.17 1,557.89 c) % of Gross NPA to Gross 3.25 2.26 2.25 3.25 2.25 Advances d) % of Net NPA to Net Advances 1.21 0.50 0.71 1.21 0.71 e) % of Gross NPA to Gross Advances – Proforma (Refer 3.27 Note 8) f) % of Net NPA to Net Advances 1.24 – Proforma (Refer Note 8) (v) Return on average Assets (%) not 0.43 0.49 0.38 1.85 1.87 annualized

Segment Results

The reportable segments of the Bank as per RBI guidelines are as under:

Segment Principal activity Corporate / Wholesale Wholesale borrowings and lending and other related services to the corporate sector which are not Banking included under retail banking. Retail Banking Includes lending, deposit taking and other retail services / products including credit cards. Treasury, BMU and Corporate Money market, forex market, derivatives, investments and primary dealership of government Centre securities, Balance Sheet Management Unit (BMU) responsible for Asset Liability Management and Corporate Centre which primarily comprises of support functions.

` crore Quarter ended Year ended 31-Mar-21 31-Dec-20 31-Mar-20 31-Mar-21 31-Mar-20 (Audited) (Unaudited) (Audited) (Audited) (Audited) Refer Note 2 Refer Note 2 1 Segment Revenue a. Corporate / Wholesale Banking 3,254.55 3,222.96 3,707.88 13,016.78 13,918.46 b. Retail Banking 3,442.03 3,404.98 3,757.21 13,815.72 15,057.84 c. Treasury, BMU and Corporate 2,649.68 2,350.09 1,765.38 9,478.61 6,693.60 Centre d. Other Banking business - - - - - Sub-total 9,346.26 8,978.03 9,230.47 36,311.11 35,669.90 Less: Inter-segmental revenue 947.87 1,033.56 936.40 4,011.64 3,368.18 Total 8,398.39 7,944.47 8,294.07 32,299.47 32,301.72 2 Segment Results a. Corporate / Wholesale Banking 1,406.50 1,562.22 1,280.46 5,698.86 4,384.22 b. Retail Banking (77.06) (151.21) 349.56 577.41 1,553.19 c. Treasury, BMU and Corporate 898.64 1,073.30 47.79 3,026.72 1,867.26 Centre d. Other Banking business - - - - - Total Profit Before Tax 2,228.08 2,484.31 1,677.81 9,302.99 7,804.67 3 Segment Assets a. Corporate / Wholesale Banking 1,62,450.23 156,010.68 153,443.88 1,62,450.23 153,443.88 b. Retail Banking 2,40,506.83 235,768.44 216,234.38 2,40,506.83 216,234.38 c. Treasury, BMU and Corporate 1,45,793.98 162,441.94 133,563.77 1,45,793.98 133,563.77 Centre d. Other Banking business - - - - - Sub-total 5,48,751.04 554,221.06 503,242.03 5,48,751.04 503,242.03 Less : Inter-segmental Assets 1,65,778.54 165,823.50 143,307.69 1,65,778.54 143,307.69 Total 3,82,972.50 388,397.56 359,934.34 3,82,972.50 359,934.34 Add : Unallocated Assets 516.12 628.13 317.34 516.12 317.34

Total Assets as per Balance Sheet 3,83,488.62 389,025.69 360,251.68 3,83,488.62 360,251.68 4 Segment Liabilities a. Corporate / Wholesale Banking 1,45,580.04 140,547.20 137,983.86 1,45,580.04 137,983.86 b. Retail Banking 2,26,380.72 221,565.27 200,770.56 2,26,380.72 200,770.56 c. Treasury, BMU and Corporate 1,13,306.32 130,284.19 115,719.99 1,13,306.32 115,719.99 Centre d. Other Banking business - - - - - Sub-total 4,85,267.08 492,396.66 454,474.41 4,85,267.08 454,474.41 Less : Inter-segmental Liabilities 1,65,778.54 165,823.50 143,307.69 1,65,778.54 143,307.69 Total 3,19,488.54 326,573.16 311,166.72 3,19,488.54 311,166.72 Add : Unallocated liabilities 273.11 538.50 69.66 273.11 69.66 Add : Share Capital & Reserves & 63,726.97 61,914.03 49,015.30 63,726.97 49,015.30 surplus Total Liabilities as per Balance 3,83,488.62 389,025.69 360,251.68 3,83,488.62 360,251.68 Sheet

STANDALONE CASH FLOW STATEMENT ` crore Particulars Year ended Year ended 31-Mar-21 31-Mar-20 (Audited) (Audited) CASH FLOW FROM OPERATING ACTIVITIES Profit after tax 6,964.84 5,947.18 Add: Provision for tax 2,338.15 1,857.49 Net Profit before taxes 9,302.99 7,804.67 Adjustments for :- Employee Stock Options Expense 1.74 2.75 Depreciation on Bank's Property 366.77 371.95 Loss on sale of investments in associates 9.91 8.43 Diminution / (write back) in the value of Investments 408.27 90.12 Dividend from Subsidiaries/ Joint Ventures (15.62) (51.80) Amortization of Premium on HTM Investments 393.05 306.65 Provision for Non Performing Assets, Standard Assets and Other Provisions 2,503.44 2,126.04 Profit on sale of Fixed Assets (30.27) (27.63) 12,940.28 10,631.18 Adjustments for :- (Increase) / Decrease in Investments (other than Subsidiaries, Joint Ventures, (29,325.49) 2,926.34 Associates and Other HTM Investments) (Increase) in Advances (5,758.30) (15,458.93) (Increase) in Other Assets (2,801.03) (1,440.27) Increase in Deposits 17,279.53 36,940.16 Increase / (Decrease) in Other Liabilities and Provisions 4,699.47 (1,438.10) (15,905.82) 21,529.20 Direct Taxes Paid (2,332.76) (2,000.95) NET CASH FLOW (USED IN) / FROM OPERATING ACTIVITIES (A) (5,298.30) 30,159.43

CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (293.92) (346.70) Sale of Fixed Assets 42.58 34.84 Proceeds from sale of Investment in Associates 1.98 1.67 Investments in Subsidiaries/ Joint Ventures (25.00) (85.00) Increase in Investments in HTM securities (1,510.36) (7,110.67) Dividend from Subsidiaries/ Joint Ventures 15.62 51.80 NET CASH FLOW USED IN INVESTING ACTIVITIES (B) (1,769.10) (7,454.06)

CASH FLOW FROM FINANCING ACTIVITIES (Decrease) in Refinance (1,450.31) (1,163.62) (Decrease) / Increase in Borrowings [other than Refinance and Sub-ordinated (12,892.36) 6,908.64 debt] Money received on exercise of Stock Options/Issue of Equity Shares 7,843.75 360.61 Share Issue Expenses (46.48) (0.37) Dividend paid including Corporate Dividend Tax (40.50) (222.34) NET CASH FLOW (USED IN) / FROM FINANCING ACTIVITIES (C) (6,585.90) 5,882.92

(Decrease) / Increase in Foreign Currency Translation Reserve (D) (12.47) 28.47

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (A + B + (13,665.77) 28,616.76 C + D)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 53,292.30 24,675.54 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 39,626.53 53,292.30

Note:

Particulars Year ended Year ended 31-Mar-21 31-Mar-20 (Audited) (Audited) Note: Balance with Banks in India in Fixed Deposit 3.17 6.50 Balance with Banks in India in Current Account 248.87 168.54 Money at Call and Short Notice in India 15,300.00 40,300.00 Cash in hand (including foreign currency notes) 1,455.17 1,721.61 Balance with RBI in Current Account 11,038.44 7,783.44 Balance with Banks Outside India: (i) In Current Account 1,308.93 626.10 (ii) In other Deposit Accounts 10,271.95 2,686.11 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 39,626.53 53,292.30

NOTES:

1. The above results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors held on 3rd May, 2021. The results for the quarter and year ended 31st March, 2021 are subjected to audit by the Statutory Auditors and there are no modifications in the Auditor’s Report. The results for quarter ended 31st December, 2020 have been subjected to limited review by the Statutory Auditors.

2. The figures of the last quarter in each of the year are balancing figures between audited figures in respect of full financial year and the unaudited published year to date figures up to the third quarter of the respective financial year.

3. Other Income includes non-fund based income such as commission earned from guarantees / letters of credit, financial advisory fees, selling of third party products, earnings from foreign exchange transactions and profit / loss from the sale of securities. Provision / (write-back) for mark-to-market depreciation on investments in AFS and HFT categories are considered under Provisions and Contingencies.

4. Provisions and contingencies are net of recoveries made against accounts which have been written off as bad in the previous period / year.

Break up of provisions (other than tax) and contingencies: ` crore Particulars Quarter ended Year ended 31-Mar-21 31-Dec-20 31-Mar-20 31-Mar-21 31-Mar-20 (Audited) (Unaudited) (Audited) (Audited) (Audited) Refer Note 2 Refer Note 2 Provision towards advances / Others (including provisions for exposures to entities with Unhedged Foreign Currency 745.51 460.20 373.72 1,874.44 1,476.04 Exposures) (Refer Note 8) (net)

General provision for COVID 19 - - 650.00 629.00 650.00 Deferment cases (net) Provision / (write-back of provisions) for mark-to-market depreciation on investments in 445.27 (5.27) 23.68 452.68 60.58 AFS and HFT categories (net) Other Provision / (write back of other provisions) towards (11.37) (36.35) 0.07 (44.40) 29.54 investments (net)

Total provisions (other than Tax) and contingencies 1,179.41 418.58 1,047.47 2,911.72 2,216.16

5. In addition to the widespread public health implications, the COVID-19 pandemic has had an extraordinary impact on macroeconomic conditions in India and around the world. During the previous year, people and economies around the world, witnessed serious turbulence caused by the first wave of the pandemic, the consequent lockdowns, the gradual easing of restrictions and the emergence of new variants of the virus. Although the government has started vaccination drive, COVID-19 cases have significantly increased in recent months due to second wave as compared to earlier levels in India. Various state governments have again announced strict measures including lockdowns to contain this spread. As COVID vaccines are administered to more and more people, businesses in sectors impacted by pandemic may pick up. However, the continuing and evolving nature of the virus has created uncertainty regarding estimated time required for businesses and lives to get back to normal.

The Bank continues to closely monitor the situation and in response to this health crisis has implemented protocols and processes to execute its business continuity plans and help protect its employees and support its clients. The pandemic has impacted lending business, distribution of third party products, fee income from services or usage of debit/ credit cards, collection efficiency etc. and has resulted in increase in customer defaults and consequently increase in provisions. The Bank, however, has not experienced any significant disruptions in the past one year and has considered the impact on carrying value of assets based on the external or internal information available up to the date of approval of standalone financial results. The future direct and indirect impact of COVID-19 on Bank business, results of operations, financial position and cash flows remains uncertain. The standalone financial results do not include any adjustments that might result from the outcome of this uncertainty.

6. In accordance with the RBI guidelines relating to COVID-19 Regulatory Package dated 27th March, 2020, 17th April, 2020 and 23rd May 2020 and clarification issued by RBI through Indian Bankers Association dated 6th May, 2020, the Bank has granted moratorium on the payment of installments and/or interest, as applicable, falling due between 1st March, 2020 and 31st August, 2020 to eligible borrowers classified as Standard, even if overdue, as on 29th February, 2020. The moratorium period, wherever granted, is excluded from the number of days past-due for the purpose of asset classification under RBI's Income Recognition and Asset Classification norms.

The Bank hold provisions as at 31st March, 2021 against the potential impact of customers impacted by COVID-19 pandemic, which is higher than the regulatory requirements.

The disclosure requirements as required by RBI circular dated 17th April, 2020 for the year ended 31st March 2021 is given below:

Particulars Amount in ` crore Advances outstanding in SMA/overdue categories, where the moratorium / deferment was extended, 9,559 as per the COVID 19 regulatory package, as at 29th February 2020 Advances outstanding where asset classification benefits is extended$ 115 Provisions made in terms of paragraph 5 of the COVID 19 Regulatory Package 1,401

Provisions adjusted against slippages in terms of paragraph 6# 122

Residual provision as at 31st March 2021 1,279 $ As of 31st March, 2021 in respect of such accounts # Bank has chosen not to adjust provisions against slippages post Q1FY21

7. In accordance with Resolution Framework for COVID-19 announced by RBI on 6th August, 2020, the Bank has implemented one-time restructuring for certain eligible borrowers and such borrowers are classified as Standard in accordance with the above framework.

The disclosure requirements as required by RBI circular dated 6th August, 2020 for the year ended 31st March 2021 is given below: ` crore except number of accounts Type of borrower (A) Number of (B) exposure to (C) Of (B), (D) Additional (E) Increase in accounts where accounts aggregate funding provisions on resolution plan has mentioned at (A) amount of debt sanctioned, if account of the been implemented before that was any, including implementation under this window implementation of converted into between of the resolution the plan other securities invocation of plan the plan and implementation Personal Loans 6,482 82.38 - - 9.01 Corporate persons* 8 12.67 - - 1.27 Of which, MSMEs - - - - - Others 16 26.45 - - 2.64 Total 6,506 121.50 - - 12.92

*As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016

8. The Honourable Supreme Court of India, in multiple writ petitions, vide an interim order dated 3rd September, 2020 had directed that accounts which were not declared as NPA till 31st August, 2020 shall not be declared as NPA till further orders. Basis the said interim order, the Bank had not classified any borrower account (whether granted moratorium or not) as NPA after 31st August, 2020. Had the Bank classified borrower accounts which were more than 90 days overdue as at 31st December, 2020 as NPA, the gross NPA ratio and net NPA ratio as at 31st December, 2020 would have been 3.27% and 1.24% respectively. As a matter of prudence, the Bank had made additional standard provision of ₹ 814 crore on such advances as of 31st December, 2020 including income accrued and not collected.

The Honourable Supreme Court of India vacated the interim relief granted not to declare accounts of borrower as NPA vide its judgement on 23rd March 2021. Accordingly, the Bank has classified borrowers as NPA with effect from 1st September, 2020 in accordance with instructions contained in paragraph 5 of the RBI circular dated 7th April, 2021. The additional standard provision held on 31st December, 2020 were utilised for making provisions on these accounts and reversing income not collected in respective quarters.

Further, RBI circular dated 7th April, 2021 required banks to refund/adjust the ‘interest on interest’ charged to the borrowers during the moratorium period, i.e. 1st March, 2020 to 31st August, 2020 in conformity to the Honourable Supreme Court of India judgement on 23rd March 2021. Pursuant to the said order and as per the RBI circular, the methodology for calculation of the amount of such 'interest on interest' was finalised by the Indian Banks Association (IBA). The Bank is in the process of implementing this methodology and pending finalization has created a liability towards estimated interest relief of Rs 110 crore and has reduced the same from interest earned for the quarter and year ended 31st March 2021.

9. During the first quarter of the current financial year, the Bank had issued 65,000,000 equity shares of a face value ` 5 each at a price of ` 1,145 per equity share including a premium of ` 1,140 per equity share aggregating to ` 7,442.50 crore pursuant to a Qualified Institutional Placement (QIP).

10. During the quarter, the Bank has granted Nil options under employee stock option scheme. Stock options aggregating to 1,356,947 were exercised and allotted during the quarter and 6,159,212 stock options were outstanding with employees of the Bank and its subsidiaries as at 31st March, 2021.

11. RBI circular DBOD.No.BP.BC.1/21.06.201/2015-16 dated 1st July, 2015 on 'Basel III Capital Regulations', read together with the RBI circular DBR.No.BP.BC.80/21.06.201/2014-15 dated 31st March, 2015 on 'Prudential Guidelines on Capital Adequacy and Liquidity Standards-Amendments', requires banks to make applicable Pillar 3 disclosures, including leverage ratio and liquidity coverage ratio under the Basel III Framework. These disclosures are available on the Bank's website at the following link: https://www.kotak.com/en/investor-relations/financial-results/regulatory-disclosure.html. These disclosures have not been subjected to audit or limited review.

12. The Board of Directors of the Bank have proposed a dividend of ` 0.90 per share having face value ` 5 for the year ended 31st March, 2021 (Previous Year NIL). The Bank is obliged to pay dividend to those shareholders whose names are appearing in the register of members as on the book closure date. The dividend will be paid after the approval of shareholders at the Annual General Meeting.

13. The summarised standalone Balance Sheet of the Bank is given below: ` crore As at As at Summarised Balance Sheet 31st March 2021 31st March 2020 (Audited) (Audited) CAPITAL AND LIABILITIES Capital 1,490.92 1,456.52 Employees’ Stock Options (Grants) Outstanding 2.16 2.87 Reserves and Surplus 62,236.05 47,558.78 Deposits 280,100.04 262,820.52 Borrowings 23,650.65 37,993.31 Other Liabilities and Provisions 16,008.80 10,419.68 TOTAL 383,488.62 360,251.68 ASSETS Cash and Balances with Reserve Bank of India 12,493.61 9,505.05 Balances with Banks and Money at Call and Short Notice 27,132.92 43,787.25 Investments 105,099.19 75,051.54 Advances 223,688.62 219,748.19 Fixed Assets 1,535.27 1,623.13 Other Assets 13,539.01 10,536.52 TOTAL 383,488.62 360,251.68

14. There has been no change in the significant accounting policies during the quarter and year ended 31st March 2021.

15. Figures for the previous period’s / year have been regrouped wherever necessary to conform to current period’s / year’s presentation.

By order of the Board of Directors For Kotak Mahindra Bank Limited

Dipak Gupta Mumbai, 3rd May, 2021 Joint Managing Director